Directors and Officers (D&O)

Standard business insurance policies protect the company itself, but they do not always protect the people who run it. Directors and officers can still be personally sued by employees, vendors, competitors, investors, customers, or other third parties. Aspen Insurance Agency recommends Directors and Officers (D&O) Insurance for many commercial clients to help safeguard leadership from personal financial exposure.

What Is D&O Insurance

Directors and Officers Insurance provides liability protection for individuals who serve on a company’s board of directors or act as corporate officers. This coverage applies to leaders in for profit companies, privately held businesses, nonprofit organizations, and educational institutions.

D&O insurance helps protect leaders when claims allege that decisions they made, actions they took, or policies they implemented caused a financial loss or violated duties owed to stakeholders. For example, failure to comply with regulations, creating unsafe workplace conditions, or mismanaging funds may all fall under D&O coverage.

Examples of Claims Against Directors and Officers

Leadership may be named personally in claims involving:

• Shareholder lawsuits related to stock performance
• Decisions made outside the officer’s authority
• Failure to comply with laws, rules, or regulations
• Employment practices or HR related issues
• Cyber liability incidents
• Breach of fiduciary duty
• Misuse or mismanagement of company funds

D&O claims can be expensive and time consuming, and they often require significant legal defense even when allegations are unfounded.

Types of D&O Coverage

A D&O insurance policy typically includes three types of protection:

A Side Coverage

Protects directors, officers, and sometimes employees when the company cannot indemnify them.

B Side Coverage

Reimburses the company when it indemnifies directors, officers, or employees for covered claims.

C Side Coverage

Protects the corporation itself and may reduce the policy limits available to individual directors and officers.

Selecting the appropriate structure of coverage depends on your company’s unique risks, governance structure, bylaws, and industry exposure. A knowledgeable insurance advisor can help determine which coverages are necessary.

Aspen Insurance Agency works closely with legal teams, finance officers, and business leadership to ensure your D&O coverage remains aligned with your company’s evolving needs.

Request a D&O Insurance Quote

Protect the individuals who guide your business with Directors and Officers Insurance. Contact Aspen Insurance Agency today to request a quote or learn more about your coverage options.

About Aspen Insurance Agency

Aspen Insurance Agency is based in Denver, Colorado, and serves clients nationwide. As a family owned agency, we work with multiple insurance carriers to offer affordable and comprehensive insurance solutions. We provide personal, commercial, and professional insurance to residential and commercial clients, helping you secure the coverage you need at the lowest possible cost.